Vietnam remains magnet for Singapore investors

Singapore-based Max Loh, EY’s managing partner for ASEAN, said Vietnam was still an attractive investment destination for Singapore investors although Myanmar was emerging as a new magnet for investors worldwide.

Loh, who came to Vietnam last week to announce new changes at Ernst & Young global, added new investors from Singapore were coming in Vietnam, while Singapore companies already operating in the country were also increasing their investment capital.

Singapore currently ranks second among more than 100 countries and territories investing in Vietnam, according to Vietnamese Minister for Planning and Investment Bui Quang Vinh. This ranking takes into account both Singaporean-owned companies and multinationals present on the island.

Loh said the Vietnam-Singapore Industrial Park (VSIP) Joint Venture Company was expanding strongly.

Meanwhile, Singapore-based SembCorp is already in the initial steps to develop a $2 billion 1,200 megawatt thermo power plant in the central province of Quang Ngai, home to Vietnam’s only oil refinery.

Asked about the failure of Vietnamese firms to get listed on the Singapore Exchange, Loh said the companies faced problems because the exchange required high levels of transparency from listed companies, and Vietnamese firms were facing difficulties in meeting requirements on risk management and corporate governance. Meanwhile, Vietnam has an inadequate legal framework for overseas listings.

Once these issue were overcome, Vietnamese firms would have to offer “a right price, right team and the right story” to international investors, said Loh.

Although no Vietnamese company had currently had their shares listed on the  Singapore Exchange, it was by no means impossible.

Loh announced that Mark Weinberger, 51 former Assistant Secretary (Tax Policy) of the US Treasury, had become the global chairman and CEO of Ernst & Young, which was recently renamed EY.

Together with the new head, the global leader in assurance, tax, transactions and advisory services has introduced its new slogan as Building a better working world. EY also unveiled its new logo.

Weinberger replaced Jim Turley who retired on July 1, a move that coincided with the firm’s rebranding Loh said.

Shortening the name would provide consistency and ease of use for EY practices and clients around the world, he added.